Oil rig owner Borr secures extra liquitity from lenders

OSLO (Reuters) - Lenders to oil rig operator Borr Drilling have agreed to provide about $12 million in extra liquidity, the company said on Tuesday.

Borr, which is listed in Oslo and New York, reached a deal with banks and lender Hayfin Capital Management, which entails payment-in-kind interest and deferral of funding of restricted cash accounts during the next 12 months, it said.

“The Company has decided to lower the amount to be raised in the contemplated equity offering to $25-30 million; which, combined with the lenders’ concession, will provide Borr Drilling with sufficient liquidity,” the company said in a statement.

The equity offering is covered and was expected to close around 1900 CET (1700 GMT) on Tuesday, it said.

The previous plan was to raise between $40 million and $50 million in new equity.

The company has decided against using the proceeds to buy back convertible debt, it added.

Reporting by Victoria Klesty; Editing by David Goodman